Demonetisation: The repurcussions and benefits

Before you read my article  I suggest you to go through this summary of accounts, which reflects how Demonetisation has benefited our country. 

Note bandi (Demonetisation) Modi's achievements 

Amongst all points, consider the below as well

1) No. Of Persons Filing IT Returns :

13-14.     3,31,47,372

14-15.     3,51,02,458

15-16.     3,90,57,028

16-17.     4,47,04,734

17-18.     5,43,91,232

That means Increase of 64.09% as compared to 13-14.

2) No. Of IT Returns filed Including Revised Returns:

13-14.   3,79,76,554

14-15.   4,04,33,614

15-16.   4,63,04,045

16-17.   5,57,09,086

17-18.   6,85,32,510

That means a Whopping Increase of 80.46% as compared to 13-14.

Also, Please Note that number of Revised Returns have increased manifold due to Fear Instilled in Tax Evaders after Demonetisation. 

3)No. Of Tax Payers:

  (A tax payer is a person who either has filed IT return or in whose favor, Tax has been Deducted At Source, In case he has not filed IT Return)

13-14.    5,27,93,542

14-15.    5,71,58,811

15-16.    6,15,23,699

16-17.    6,92,73,834

17-18.    7,41,27,250

That means Increase of 40.41% as compared to 2013-14.

4) Direct Tax Receipts: 

    ( figures in Crores) 

13-14.    7,21,604

14-15.    7,99,459

15-16.    8,64,369

16-17.    10,12,401

17-18.    11,54,436

That means Increase of 59.98% as compared to 2013-14. 

5) Indirect Tax Collection:

 (Figures in Crores)  

13-14.    4,95,347

14-15.    5,43,215

15-16.    7,11,885

16-17.    8,61,515

17-18.    9,15,256

That means a Whopping Increase of 84.77% as compared to 2013-14.

6) Direct Tax to GDP Ratio:

13-14.     5.62%

14-15.     5.55%

15-16.     5.47%

16-17.     5.57%

17-18.     5.98%

What does this all Indicate? 

1)India is becoming more Tax Compliant. 

2) India is Slowly starting to follow Financial Discipline. 

3) More and More Informal Sectors are coming into the Formal Organised sectors... Increasing Tax Base. 

4) With Increased Tax Collection.... Govt is getting more funds for those schemes which actually increase Public Welfare. 

5) In spite of, spending more on Welfare Schemes like MNREGA, Ujwala, Ujala, Ayushman Bharat etc.... Fiscal Deficit is below 3.3%

6) With more Tax Collection, Govt is able to spend more on Infrastructure and Defence. 

7) Most importantly... GST has helped Govt to Reconcile between Direct and Indirect Tax Payers. 

Now... It's up to you to decide.... 

What do you want for Yourself and Your Future Generations? 

A Financially Undisciplined Country where you Die paying Indirect Taxes for Govt's Fiscal Deficit ( That too because of Numerous Scams of UPA) or A Disciplined Country which depends less on Indirect Taxes and improves Your Standard of Living with Reduced Cost of Living....

Future is Yours... Choice is Yours. 

Choose Wisely. 

Source: 1) Reports of

                  C&AG of 

                 Different Years. 

              2) OLTAS/Pr.CCA,

                   CBDT.

Demonetisation of Indian currency and it’s repurcussions and benefits... 

An important feed back on Demonetisation, reflecting why it was important. 

After demonetisation, the boldest step of our PM, India undergoing one of the most unexpected but self imposed currency crisis which is introduced due to the bold decision inevitable to cleanse the black money which is in the interest of the nation.

Of late since the announcment there are lot of mixed reaction in the sentiments of the people though most of them are positive with regard to the same as majority of Indian citizens are happy deep down at their heart though the are facing diffculties due to the cash shortage. But when I came across a few hundred peoples at various tryst in banks and other parts of the city and during interaction it was noticed that inspite of hurdles and ordeal situations they are convinced with the decision of government and are happy to undergo the ordeal in the largest interest of the nation. Deep down in their heart all are happy.

Positive remark on Demonetisation

Having said that a few are reluctant to accept the fact that this is one of the all time best effort by Indian government to cleanse the system and one should realize that when ever you indulge in cleansing the system which is as old as 70 years it may be that much painful too. But the pain is temporary and the healing and benefits are permanent.

Actor Paresh Rawal on Demonetisation

Further we should also analize the fact why and how do the black money really accumalate and who are the culprits behind this. Are the burecrats and other government officals are only to be blamed or we comman man are also has a role in allowing the black money getting accumalated. The time has come we open our eyes and “call spade a spade” and take oath that we will never become a part or a become a reason either directly or indirectly to help accumalate black money in the hands of others. For the same we need to understand the following. The black moneys are accumalated with a few lot due to the reason the comman man and down trodden or business man has given it to them. They could not have generated without the cooperation of comman man and business man.

Malpractises by bank official unmasked.

• It is we who goes and get our daily needs from a retail shop for cheaper price which hardly pay any tax at all which help accumalate black money.
• It is we who looks for alternative option while buying a product to avoid Invoice so that the price could be less which help accumalate black money.
• When some government employees manage to accumalate black money and it is we who pay them to get our jobs done in quicker way for our convenience.
• It is the common citizens of the country who always keep complaining about the system of the country and it is the same common person who become the prime reason for the derailment of the system in the country as it is he who bribe the officers to over come the system.

Amar Singh on Demonetisation

Having mentioned a few I would like to appeal to all so called citizen of India who really contribute from the front for the growth of black money in the hands of governement employees and other officials due to our own negligence and apathy, let us shed this attitude and raise to the occasion and help not to become a reason for the accumalation of black money in the hands of officers or shopkeepers for the same we need to stop bribing and obtain orginal invoice for any items that we purchase everytime without fail.

Modi's Motivational speech at Goa immediatly after Demonetisation

The other brighter side of the demonetisation are that now Indian banks are now being flooded with currencies both black and white and as a result of which Indian banks would end up accumalating a few lakh crores within 31^st Dec 2016. Due to the same Indian finincial system would become healthy and stronger market after initial undergoing the initial shock as we face now, and the same will open up and market would witness good liquidity and it may help in enhancing of the purchasing power of a few category of the population for more than one reason.

Modi's speech at Rajya sabha after Demonetisation

It is noticed that certain section of the society are panic with regard to the demonetisation drive and its repurcussions on business and real estate. My view are as follows. After 500 Rs and 1000 Rs denomination notes banning with effect from 8^th Nov 2016 the following developments are expected.

Pro Demonetisation message through this video

Huge deposits in bank will takes place which can be in the tune of some where 12 lakh to 13.5 lakh crore ruppees which would be historical and all time high. The same will prompt RBI to reduce the Cash Reserve Ration (CRR) by even 1% . As a result of the same all the banks in India would become eligibile to pump loans to the market through their prospects by all means like Home loans, personnel loans, Car loans, home appliances loans, automobile loans etc and as a result the purchasing power of Indians would become high and due to the same more demand for products in the market would takes place and as a result of the same production and competitation would be high which further would check the rate resulting in reduction in price which further bring down the inflation.

Demonetisation message Anti-Terror benefit

Having said that I would like to point out that the inflation would be low to only FMCG products and to all those which could be produced in factory but the price of the products which cannot be produced will shoot up after an initial panic low the only product which cannot be produced further are Property(Real Estate). Yes the property price must move upwards where as the price of the Flats may come down for another 1 year. But the plots rate may go up with immediate effect for the obivious reasons.

Complete information revealed on Demonetisation

  

A few’s purchasing power increase would be due to the reason that undeclared money is being brought into the main stream and the same could be invested without any hesitation. Around 70000 crore of black money was disclosed during 30^th Sept deadline and that 70000 crore too would flood into the market in it’s own pace. The cash reserve ration of the bank could be further reduced keeping in view the enourmous liquid cash availibility which may prompt banks to pump into the market more personnel loans, home loans and that too probably at a lesser interest rate.

Modi ji on Demonetisatoin at a public occasion

Over all the scenario will lead to a situation where in the pain is temporary and benefit is permanent. There is a saying there is “no gain without pain”. So let us tolerate the impediments, inconveniences, hardships and other unfamiliar situations that we are facing now which is not going to stay for ever, it is a temporary situation we are all put in for the sake of out countries larger benefit and when our soldiers can undergo ordeal circumstances and situations throughout day and night when they are on duty can’t we Indian face and manage our temporary uncomfortable days in the larger interest of the nation. I am confident every patriotic Indian may be feeling proud to suffer a few losses which is a contribution from our side towards national building. Yes we all Indian should feel lucky for we got a similar oppourtunity as those Indian citizens who got during British rule. They suffered to cleanse India from foreign rules and gifted us with an Independent India and today we can feel fortunate enough to contribute our bit of suffering in the larger interest of our nation in the nations effort to cleanse the systerm from black money. This may prove to be an important decision towards India’s future where in due to more than one reason I feel our economy would grow at faster rate may be in a revolutnary way with surge in forex as well as high GDP.

An another video of Mr Modi on Demonetisation

Last but not the least, under this circumstances we must see to it that we help all the poor neigbours who are not well versed to operate their bank accounts by assisting them to deposit and withdraw the 500 and 1000 denomination notes so that it does not remain struck with them. That would be the one of the most important step that we can do which may seems to be a very ordinary for us but a huge help for them. Finally would like to add one more thing as I can’t eschew from the same and it is a humble suggestion to all unfortunate corrupt and rich citizens of India (Kindly note rich does not stand for corrupt, there are lakhs of rich population in India who are not corrupt but very rich). who had managed accumalate black money to cleanse the sin and come out neat by distributing the money among poor and down trodden. If you can distribute 10000/- or 20000/- each to 1000’s of poor (Please not to middle class) but to lower middle class or to poor so that it may help to contribute to bring some smiles and probably for a few it may be a ladder to change their life in a small way thus contributing to Indian economy thus cleansing your sin as well.

Anti- Demonetisatoin speech video

May God bless India and all it’s citizens to come out of this ordeal withstanding the situation courageously and patiently.

Jai Hind

Sudesh DJV

Indore MP / India

13^th Nov 2016 / 6:30 pm

A cartoon motivated by Demonetisation mocking the black money hoarding personnels

Mysore airport's role during Demonetisation to carry and supply currenciees to various parts of the country

Amid for a change a comedy scene though not practical

An out of the way response by a lady on Demonetisation